Can ASFs be salvaged from end of grandfathering?

The Association of Financial Advisers (AFA) has sought to give its members a guide to whether they can convert at least some elements of grandfathered commissions into to adviser service fees, provided it is in the best interests of their clients.

The AFA has published what it has labelled a “Grandfathered Commission Decision Tree” and has stated, using the flow-chart, financial advisers who have grandfathered commission clients will need to undertake a detailed assessment and then carefully consider what action is in the best interest of their clients.

The flow chart/decision tree then asks key questions about the products from which grandfathered commissions have been derived to determine whether an arrangement needs to be cancelled either now or in the future or whether it can be negotiated into an adviser service fee (ASF).

Author

Mike Taylor

Mike Taylor is Managing Editor of the financial services publications Money Management and Super Review. He has been a journalist for the past 41 years with a career spanning coverage of financial services, federal and state politics and industrial relations.

Reality, should that apply to all, including Industry Funds charging a Fee to all members for the provision of Intra Fund advice - should this fee not also be Opt In?? I believe the argument for yes is compelling "Have genuine relationships with clients and service them every year.. That way its real easy to get them to sign an agreement every 12 months."

Ever wondered why the Govt are continuing to refuse the release of the Australian Government Solicitor' legal advice to Bill Shorten in August 2011, in relation to the exemption of including the then existing grandfathered commissions in FOFA ?There have been several requests and reviews of decisions made under the Freedom of Information Act and on all occasions, Treasury has refused to release this advice claiming it is subject to legal professional privilege.The refusal to release this advice provided at the time can only cast doubt that the current Govt do not wish to provide any basis for precedent in relation to the removal of advisers existing contractual rights to receive this remuneration as stated by Bill Shorten as the reason why these payments were to be grandfathered.This is a very clear case of adviser's contractual rights being removed via the Commonwealth passing a law resulting in the acquisition of property and without providing any compensation in respect to that loss.When an industry requests a copy of the original legal advice provided to the Govt and the current Govt refuses to release that advice, on what basis does this not look very, very concerning.